The following computer-generated description may contain errors and does not represent the quality of the book:House of Representatives, Committee on Commerce, Subcommittee on Finance and Hazardous MATERiAia, Washington, DC. The subconunittee met, pursuant to notice, at10:17 a.in., in room 2123, Rayburn House Omce Building, Hon. Michael G.Oxley (chairman) presiding. Members present: Representatives Oxley, GiUmor, Largent, Bilbray, Ganske, Lazio, Shimkus, Wilson, Sbadegg, Fossella, Bliley (ex officio), Towns, Deutsch, Stupak, Barrett, Luuier, Capps, Markey, Rush, and Dingell (ex officio). Staff present: David Cavicke, majority counsel; Robert Gordon, majority counsel; Linda Dallas Rich, mEgority counsel; Brian MdCullough, professional staff member; Robert Simison, legislative clerk; Consuela Weishington, minority counsel; Bruce Gwinn, minority professional staff member; and Christian Fjeld, minority legislative intern. Mr. Oxley. The subcommittee will come to order. Today is our first of two scheduled hearings this year on H.R.10, the Financial Services Act of 1999. For this first hearing, we are fortunate to have with us our good friend, the Chairman of the Board of Governors of the Federal Reserve System, Alan Greenspan. Chairman Greenspan will hopefully enlighten us on how financial holding companies would be regulated under H.R.10 and describe the structural problems we still need to address. In particular, I look forward to a thorough education on operating subsit- aries and the dangers of expanding taxpayer subsidies under a new financial system. The House spoke clearly on this issue last term, rejecting two floor unendments to expand the powers of bank operating subsidiaries. But the operating subsidiary has more lives than Freddie Krueger, and I am sure it will continue to revisit us at every step in this process. I also expect to hear more about the operating subsidiary at the second hearing on May 5, to which we have invited Treasury Secretary Rubin and other financial regulators, as well as various industry representatives. H.R.